The negotiations are being structured in a way that could help improve GN Savings and Loans’ liquidity. This is expected to help GN honour deposit withdrawals in the coming weeks.

GN Savings and Loans problems

GN Savings and Loans over the previous months had struggled to honour deposit withdrawals. Some of them really turned nasty, with some of their customers pitching camp at their banking halls, until their deposits are paid to them.

The institution had earlier requested the Bank of Ghana to approve its reclassification into a savings and loans, which was done January this year.

GN Savings and Loans had maintained that the move would have little impact on its operations going forward.

This is because its core operations would not be greatly affected; only that it would be restricted when it comes to cheque clearing and holding Forex accounts and transactions.

However, GN insists its challenge has come about due to the inability of government to pay for contracts and services it has carried out for government.